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Raydium is Still 75% Below ATH as the Market Consolidates

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January was rough for the entire cryptocurrency market. Almost every coin retreated to levels last seen in mid-2021 after China banned cryptocurrencies. However, the market entered February on a notable uptrend, and the entire financial market recovered.

The FUD across the market has dropped significantly, and even the Bitcoin Fear and Greed index shows that the market sentiment is neutral. In January, this sentiment had dropped to a state of extreme fear, as massive liquidations were recorded.

Raydium has joined other cryptocurrencies in the recovery process. Following this crash, Raydium is 75% below its all-time high. It has not made a strong rebound over the past week, as its 7-day gains stand at around 10.7%. At the time of writing, Raydium was trading at $4.04 after a 4.4% gain in 24 hours.

Raydium is an automated market maker (AMM) and a liquidity provider. Raydium is built on top of the Solana blockchain. Raydium has a strong use case in the crypto sector as it facilitates the bridging of new and existing projects into the Solana ecosystem and Serum. Raydium also offers on-chain liquidity where LPs on the protocol can access the orderflow and Serum’s liquidity. A strong technical foundation is a strong bullish sign for RAY in the long term.

Raydium price analysis

Raydium price analysis

Raydium last recorded a strong bullish run in September 2021, and it managed to reach a record high of $16.83. The uptrend came around two months after RAY reached an all-time low of $2.46. While it did not go below these levels during the January bear market, the performance has not been entirely incredible.

If RAY continues its bullish trend, it could test the next resistance level at $4.24. These levels could be achieved if the market enters a strong bullish rally. Currently, the prices across the market have consolidated, and coins are yet to reach record highs. However, during the past 24 hours, RAY managed to reach $4.33 as major coins made a bold uptrend. Therefore, a trader investing in RAY needs to watch out for the performance of the broader cryptocurrency market, as this has a major effect on RAY’s prices.

From these levels, RAY could target breaking past $5. It was the last trading at these levels in mid-January before the downtrend persisted. Traders that bought RAY at the $3.50 low recorded in late January could be holding on for more profits or even accumulating more. This is a bullish sign for the token.

Bears are still lurking

While the level of fear in the cryptocurrency market has been slightly alienated by the recent recovery, the bearish flag is still lurking. Cryptocurrencies are yet to enter a strong bull market; hence traders are still wary about holding on after slight gains.

Traders booking profits at low levels could prevent RAY from breaking out beyond the market support. These traders will sell at the slight sign of a market dip; hence a lack of market support at the current levels means a bearish trend for RAY.

If RAY dips, it will go to the lower support level at $3.98. Before the 24-hour uptrend, the token was trading at these levels. A sharper bearish trend could push RAY to the $3,.50 levels, forming a six-month low.

To learn more about this token visit our Investing in Raydium guide.

Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.